After falling as much as 7.2 percent from mid-September highs, the S&P 500 is enjoying a healthy bounce on Tuesday. But Sterne Agee's chief market technician, Carter Worth, contends that this is not a dip worth buying—and once investors realize that, market psychology will change in a big way.
Over the past two years, buying shallow market declines has been a winning strategy. And even though this recent stock slide has been a bit steeper from prior declines in the market, many investors still appear to believe that buying now is the right call.
"We know that last week we had that huge ricochet day and it of course gave it back the next day. We know on Friday, which was a horrible day, at some point we were green. We know yesterday, we were green at one point, and then—as long as it keeps doing that, there's no way that it's over," Worth said Tuesday on CNBC's "Futures Now."
"Someone's in there thinking, 'Aha! This is an opportunity. Buying the dip's the right thing to do, it's served me over an over again.'"
Worth makes the point that that "until that psychology is broken, I don't think that this is different."